Taxpayers and investors can exchange out of and into a wide variety of different property types. In this article, we are going to discuss 1031 exchanges of apartment buildings.

What Type of Property Suits You?

When considering investing in real estate, think about the type of property that’s right for you. Apartment buildings can be a great source of continuous revenue – with rent being paid monthly. However, be aware that apartment buildings can be management intensive compared to other properties. You need to deal with tenants, fix any maintenance issues that arise, and more. If you’re reaching retirement age, you may not want to have to deal with all these issues. In that case, it might be in your best interest to exchange into a less management intensive property.

Exchanging Up

Whatever property you choose, you should always consider a 1031 exchange to defer your capital gains taxes. Like-kind exchanges allow you to exchange up into a bigger and better property. That could mean exchanging from a duplex to a fourplex, or from an apartment complex into a restaurant. In any case, you can avoid a hefty capital gains tax bill by exchanging your property in a 1031 transaction.

Defer Taxes with Section 1031

Don’t get stuck with a huge tax windfall when you sell your next piece of real property. Instead, defer your capital gains taxes with a 1031 exchange! With more than two decades of experience, Commercial Partners Exchange Company has the skills necessary to lead your exchange across the finish line. Our intermediaries are available to answer your questions and help you get started with your exchange today. Contact us at our downtown Minneapolis office to start the conversation.

Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Meet Jeff

Jeffrey Peterson is the president of Commercial Partners Exchange Company, LLC. He received both his B.A. and his J.D. from the University of Minnesota, and is a member of the Minnesota State Bar Association and the Tax Section of the American Bar Association.

CPEC1031 is located in Minneapolis, Minnesota and provides nation-wide 1031 qualified intermediary services including the following areas: Minnesota, Wisconsin, North Dakota, South Dakota, Florida, Texas, Iowa, Boston, New York, and California.